After many years,a small community builds a toll road but discovers that it is not used very much.If it wishes for the road to be used at the socially optimal level,the community should:
A)set the toll higher.
B)set the toll equal to $1.
C)set the toll lower.
D)build another toll road.

Question

Quizplus · Accepted Answer

Setting the toll lower would make the road more affordable and attract more users to reach the socially optimal level. Setting the toll higher could discourage potential users from using the road, and building another toll road would create unnecessary duplication of resources. Setting the toll amount at $1 would not necessarily guarantee the socially optimal level of use.

After Many Years,a Small Community Builds a Toll Road but Discovers